Ault Global Holdings Announces Alzamend Neuro Pricing of Initial Public Offering
16 June 2021 - 8:30PM
Business Wire
Ault Global Holdings, Inc. (NYSE American: DPW), a diversified
holding company (the “Company”), announced today that
Alzamend Neuro, Inc. (Nasdaq: ALZN) (“Alzamend”), a
preclinical stage biopharmaceutical company focused on developing
novel products for the treatment of neurodegenerative diseases and
psychiatric disorders, priced its initial public offering of
2,500,000 shares of common stock at a price to the public of $5.00
per share for gross proceeds of $12.5 million from the offering. At
the offering price of $5.00 per share of common stock, Alzamend’s
market capitalization is $425 million.
Alzamend’s common stock began trading on the Nasdaq Capital
Market under the ticker symbol “ALZN” on June 15, 2021.
Milton “Todd” Ault, III, the Company’s Executive Chairman,
stated, “The Company is pleased that Alzamend has achieved this
milestone to further its commitment to develop treatments and cures
for Alzheimer’s, other neurodegenerative diseases and psychiatric
disorders.”
The Company has certain beneficial ownership and rights to
further invest in Alzamend as follows:
- The Company beneficially owns 5.1 million shares of Alzamend
common stock held by its wholly-owned subsidiary, Digital Power
Lending, LLC (“DPL”).
- The Company has the right to acquire 1.35 million shares of
Alzamend common stock upon the exercise of warrants beneficially
owned by DPL.
- In March 2021, Alzamend entered into a securities purchase
agreement with DPL pursuant to which Alzamend agreed to sell an
aggregate of 6.7 million shares of its common stock for an
aggregate of $10 million, or $1.50 per share, which sales will be
made in tranches. Alzamend further agreed to issue to DPL warrants
to purchase such number of shares of its common stock equal to 50%
of the shares of common stock purchased under the securities
purchase agreement at an exercise price of $3.00 per share. On
March 9, 2021, the Company issued 2.7 million shares of Alzamend
common stock (included in the 5.1 million shares of Alzamend common
stock held by DPL described above) upon closing of the first
tranche of $4 million. Under the terms of the securities purchase
agreement, DPL may purchase an additional 4.0 million shares.
- Finally, Alzamend agreed that for a period of 18 months
following the date of the payment of the final tranche of $4
million, DPL will have the right to invest an additional $10
million on the same terms, except that no specific milestones have
been determined with respect to the additional $10 million.
Should the Company exercise all warrants and options to invest,
it would own 22.4 million shares with an average cost of $2.24 per
share of common stock, representing 22% of Alzamend’s issued and
outstanding common stock.
For more information on Ault Global Holdings and its
subsidiaries, the Company recommends that stockholders, investors
and any other interested parties read the Company’s public filings
with the SEC, available at www.sec.gov, and press releases
available under the Investor Relations section at
www.AultGlobal.com.
About Ault Global Holdings, Inc.
Ault Global Holdings, Inc. is a diversified holding company
pursuing growth by acquiring undervalued businesses and disruptive
technologies with a global impact. Through its wholly and
majority-owned subsidiaries and strategic investments, the Company
provides mission-critical products that support a diverse range of
industries, including defense/aerospace, industrial, automotive,
telecommunications, medical/biopharma, and textiles. In addition,
the Company extends credit to select entrepreneurial businesses
through a licensed lending subsidiary. Ault Global Holdings’
headquarters are located at 11411 Southern Highlands Parkway, Suite
240, Las Vegas, NV 89141; www.AultGlobal.com.
About Alzamend Neuro
Alzamend Neuro®, Inc. (“Alzamend®)” (www.Alzamend.com), is a
Delaware corporation with its corporate headquarters in Tampa,
Florida. The mission of Alzamend is to help the Alzheimer’s
community by supporting the full product development life cycle of
treatment and cures for Alzheimer’s disease (“AD”) driven by the
belief that strong support of research is the foundation for true
innovation. Alzamend is currently working to transition two
therapeutics targeting AD from the preclinical stage at the
University of South Florida into the clinical stage and towards
full commercialization. Alzamend has licensed both a patented
mutant-peptide immunotherapeutic (AL002) for use as a treatment or
vaccine and a lithium based ionic cocrystal therapy (AL001) that
may greatly reduce or eliminate the symptoms of agitation and other
endpoints for mild to moderate stage patients diagnosed with AD.
www.Alzamend.com.
Forward-Looking Statements
This press release contains “forward looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements generally include
statements that are predictive in nature and depend upon or refer
to future events or conditions, and include words such as
“believes,” “plans,” “anticipates,” “projects,” “estimates,”
“expects,” “intends,” “strategy,” “future,” “opportunity,” “may,”
“will,” “should,” “could,” “potential,” or similar expressions.
Statements that are not historical facts are forward-looking
statements. Forward-looking statements are based on current beliefs
and assumptions that are subject to risks and uncertainties.
Forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update any of them
publicly in light of new information or future events. Actual
results could differ materially from those contained in any
forward-looking statement as a result of various factors. More
information, including potential risk factors, that could affect
the Company’s business and financial results are included in the
Company’s filings with the U.S. Securities and Exchange Commission,
including, but not limited to, the Company’s Forms 10-K, 10-Q and
8-K. All filings are available at www.sec.gov and on the Company’s
website at www.AultGlobal.com.
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